Post offices 'may close in pay row'

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Thousands of subpostmasters could be forced to close their business unless their pay is improved and they are given more work by the Government, ministers will be warned.

The annual conference of the National Federation of Subpostmasters will demand an "immediate commitment" from the new coalition government for extra work to avoid a fresh wave of closures.

The federation is in dispute with the Post Office over pay and has warned of widespread closures after claiming that subpostmasters have been hit by "totally unacceptable" cuts in pay.

General secretary George Thomson will open the conference in Torquay with a warning that up to 3,000 subpostmasters could be forced to close their office unless they are supported with better pay and more work from central and local government.

"It is a matter of grave concern that we begin our annual conference with the very real threat of mass post office closures due to a lack of new work for our members and now the unacceptable decision by Post Office Ltd to cut subpostmasters' pay.

"I will be seeking to establish a positive relationship with this new coalition government to urgently generate the new products and services that are essential if the network is to survive. However we cannot ignore the challenges that lie ahead.

"I expect to hear a commitment from government that it acknowledges the vital importance of post offices to thousands of communities up and down the country, and that it plans to do all it can to sustain them.

"For the benefit of the nation, the new government must think Post Office first when it is awarding new contracts and renewing existing ones."

A Post Office spokesman said: "The Post Office is working extremely hard to support subpostmasters across the entire network by developing new products and services as well as ensuring we retain existing business, and average branch remuneration across the network has increased every year for the last four.

"In the financial year just ended, the average branch remuneration rose by 5% at a time when pay for all direct employees across Royal Mail Group was frozen, and under the pay arrangements for this current year, we expect many subpostmasters to see their remuneration increase further despite the tough trading conditions faced by the entire company."